We have been considering the insurance space, particularly smaller market cap insurtechs. Root is the one we are most invested in, though Lemonade and Oscar also intrigue us. I am curious about Tesla's insurance launch. Was that program successful and what differentiated it from other OEMs and their insurance partners?

There are fluctuations based on the car you drive, but generally, they didn't consider age, occupation, and other typical underwriting factors. They determined the cost based on how you drive. Another unique aspect was offering a month-to-month premium, allowing drivers to see how their behavior affected their insurance cost. If you drove well, your premium might be $100, but if you drove aggressively, it could be $200. This was a major differentiator from traditional carriers and insurtechs.

We have been considering the insurance space, particularly smaller market cap insurtechs. Root is the one we are most invested in, though Lemonade and Oscar also intrigue us. I am curious about Tesla's insurance launch. Was that program successful and what differentiated it from other OEMs and their insurance partners?

In the insurance market, the top five carriers control 80% of the market. Competing with them is tough due to their massive marketing budgets. Tesla focused solely on Tesla drivers and didn't spend on marketing, doing everything through the phone. When someone bought a Tesla, they were offered Tesla insurance seamlessly.

We have been considering the insurance space, particularly smaller market cap insurtechs. Root is the one we are most invested in, though Lemonade and Oscar also intrigue us. I am curious about Tesla's insurance launch. Was that program successful and what differentiated it from other OEMs and their insurance partners?

Other OEMs can't replicate this because of their dealership model. Stellantis has 2,600 dealers, and each dealer acts independently. They might prefer working with agents who offer financial incentives. This makes it challenging to integrate insurance offerings.